Monrovia – The Unity Party-led government has kicked off the formulation of the 2026 National Budget with renewed ambition and a goal to reach a historic US$1 billion mark.
By Jaheim T. Tumu, [email protected]
Finance and Development Planning Minister Augustine Kpehe Ngafuan made the announcement during a budget planning launch held in Monrovia on Tuesday, describing the process as not only a fiscal necessity but a defining moment for Liberia’s economic direction.
“We are knocking on heaven’s door,” Minister Ngafuan declared, referencing the country’s push toward the elusive billion-dollar target. “Even if we meet the US$1 billion target, issues of scarcity will remain. But their complaint is positive — it reflects ambition.”
Minister Ngafuan’s remarks stirred both optimism and caution. While he lauded the country’s recent fiscal progress, he was quick to remind stakeholders that real change would require performance, discipline, and consistency across every government entity.
Minister Ngafuan pointed to the record-breaking revenue collection in Fiscal Year 2024 as a foundation for the country’s renewed fiscal aspirations. He noted that domestic revenue hit nearly US$700 million — marking the highest ever collected in Liberia’s history.
But beyond numbers, Minister Ngafuan painted a picture of a government gaining recognition and credibility on the international stage. He highlighted Liberia’s recent election to the United Nations Security Council and its selection to host the ECOWAS Youth and Sports Development Center as proof of growing diplomatic respect.
“Our country is respected globally,” he said. “That global respect will translate to many dividends.”
In an unexpected moment that drew interest from attendees, Minister Ngafuan revealed that President Joseph Boakai had recently held “fruitful conversations” with U.S. President Donald Trump during a trip to the United States — though he did not elaborate. “These global engagements will yield dividends. Your country has been put on a pedestal of respectability—and we will keep it there,” he asserted.
Despite the inspirational tone, Minister Ngafuan delivered a stern message to government agencies and public institutions that more money would not mean better results unless there was a visible improvement in efficiency and accountability.
“Two entities can get similar budgets. One can deliver more than the other based on execution efficiency, based on forward planning,” he explained. “While you’re making claims for more resources, I have to be looking at your preparation for delivery.”
He warned internal actors suspected of stalling implementation or operating outside approved financial protocols. “When we get information that you are enforcing your own breaks — own unapproved breaks — we will act accordingly. Everyone in the delivery chain should take this very seriously,” Minister Ngafuan said.
He emphasized that allocations in the FY2026 Budget would be aligned with sectoral priorities, particularly in energy, roads, and agriculture. “We must hold deep-dive conversations on sectors like energy and roads to ensure that allocations match sector-specific realities,” he added.
Minister Ngafuan acknowledged these constraints but remained resolute. “We’re not where we want to be, but certainly not where we were years ago,” he stated.
Deputy Finance Minister for Budget, Tenneh Brunson, also delivered a pointed message, describing the national budget as more than just numbers — it is a social covenant.
“The national budget is a social contract between the government and its citizens,” Brunson said. “The FY2026 national budget must serve as a credible financing instrument to accelerate delivery.”
She emphasized that the budget will align with President Boakai’s ARREST Agenda—with focus areas including agriculture, the rule of law, education, sanitation, roads, and tourism. Brunson called for medium-term planning, baseline budgeting, and performance-based allocations to drive impact and transparency.
While the government’s fiscal ambition is high, early signs from the FY2025 budget execution suggest serious hurdles. A report from the House of Representatives’ Committee on Ways, Means, Finance, and Development Planning revealed that the national budget has already fallen short by nearly US$18 million in the first quarter.
The Ministry of Finance and Development Planning projected US$201.66 million in revenue between January and March 2025. However, actual collections amounted to only US$183.81 million, translating to a performance rate of just 91.1 percent.
Rep. P. Mike Jury, Chair of the Committee, expressed concern: “The shortfall of US$17.85 million is concerning. We discovered delays in both tax and non-tax revenue collections. More troubling is the non-compliance of SOEs in meeting their financial obligations to the national budget.”
Rep. Jury added: “This is a wake-up call. We cannot afford to lose ground on our development agenda because of institutional laxity and disregard for fiscal responsibility.”
The Liberia Revenue Authority (LRA) also reported underperformance, collecting US$336 million by the end of May—falling US$7 million short of its US$343 million target. The LRA attributed this to weak compliance by revenue-generating institutions and state-owned enterprises.
According to the Bureau of State Enterprises, only 11 of 20 SOEs submitted quarterly reports—and only four did so on time. For the quarter, SOEs were expected to contribute US$12.37 million, but only US$8.49 million was realized, leaving a deficit of US$3.88 million.
Liberia’s FY2025 Budget, which totals US$880.6 million, was signed into law in January 2025. However, of that amount, a staggering US$774 million — about 88 percent — is allocated to recurrent expenditures.
This includes US$153 million for debt servicing, alongside heavy spending on public sector salaries, foreign travel, entertainment, vehicles, fuel, and daily subsistence allowances (DSAs). Such spending leaves little fiscal room for development and capital investments.
Liberia continues to operate with a relatively low fiscal envelope compared to its neighbors in the region. It lags behind Sierra Leone, which boasts a national budget of approximately US$1.3 billion, Guinea at US$4.89 billion, and Ivory Coast with a substantial US$23.39 billion.
This is not the first time a Liberian administration has set its sights on the elusive US$1 billion mark. Since the end of the civil conflict, successive governments have made similar declarations. The previous Coalition for Democratic Change (CDC)-led government also pursued this goal but failed to achieve it during its six-year tenure.
As the FY2026 budget process unfolds, the Unity Party-led government now faces the challenge of turning ambition into execution. Analysts say its push toward a US$1 billion budget is commendable—but achieving it will demand urgent reforms, fiscal discipline, and robust institutional collaboration.
